Agenda - Council - 06/28/2016 - Laserfiche WebLink

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Summary: Ramsey, Minnesota; General Obligation Board (GASB) 68 standards, which the city implemented for its financial statements ended Dec. 31, 2015, employers with benefits administered through cost -sharing multiemployer pension plans such as GERF and PEPFF must report their proportionate share of the net pension liability. The city's proportion of the net GERF liability as of the June 30, 2015 valuation was $2.63 million and its proportion of the net PEPFF liability was $2.38 million. The funded ratio, which consists of the plan fiduciary net position as a proportion of the total pension liability, was 76.3% for GERF (the larger plan) and 83.6% for PEPFF. The city makes its ARC to the pension plans equal to the amount required by state statutes each year. Its OPEB contribution is based on projected pay-as-you-go financing requirements. We do not anticipate that these costs will increase substantially or cause budgetary stress in the near term. Strong institutional framework The institutional framework score for Minnesota cities with a population greater than 2,500 is strong. Outlook The stable outlook reflects our view of Ramsey's very strong budgetary flexibility and liquidity, which is supported by very strong management conditions. Given our expectation of stable credit conditions, we do not expect to change the rating during the two-year outlook horizon. Upside scenario A higher rating is possible if economic indicators improve to, and are sustained at, levels that are commensurate with those of higher -rated peers in addition to no deterioration in budgetary performance or flexibility and no weakening of the debt profile. Downside scenario A lower rating is possible if the city's budgetary performance and flexibility weaken. Related Criteria And Research Related Criteria • USPF Criteria: Local Government GO Ratings Methodology And Assumptions, Sept. 12, 2013 • USPF Criteria: Financial Management Assessment, June 27, 2006 • USPF Criteria: Debt Statement Analysis, Aug. 22, 2006 • USPF Criteria: Methodology: Rating Approach To Obligations With Multiple Revenue Streams, Nov. 29, 2011 • USPF Criteria: Assigning Issue Credit Ratings Of Operating Entities, May 20, 2015 • Criteria: Use of CreditWatch And Outlooks, Sept. 14, 2009 Related Research • U.S. State And Local Government Credit Conditions Forecast, April 19, 2016 • S&P Public Finance Local GO Criteria: How We Adjust Data For Analytic Consistency, Sept. 12, 2013 • Incorporating GASB 67 And 68: Evaluating Pension/OPEB Obligations Under Standard & Poor's U.S. Local Government GO Criteria, Sept. 2, 2015 • 2015 Update Of Institutional Framework For U.S. Local Governments Ratings Detail (As Of June 22, 2016) WWW.STANDARDANDPOORS.COM/RATINGSDIRECT JUNE 22, 2016 5 1661625 1302450320